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The Role of Income and Immigration Policies in Attracting International Migrants

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  • Ortega, Francesc

    ()
    (Queens College, CUNY)

  • Peri, Giovanni

    ()
    (University of California, Davis)

Abstract

This paper makes two contributions to the literature on the determinants of international migration flows. First, we compile a new dataset on annual bilateral migration flows covering 15 OECD destination countries and 120 sending countries for the period 1980-2006. We also collect data on time-varying immigration policies that regulate the entry of immigrants for our destination countries over this period. Second, we extend the empirical model of migration choice across multiple destinations developed by Grogger and Hanson (2011) by allowing for unobserved individual heterogeneity between migrants and non-migrants. Our estimates show that international migration flows are highly responsive to income per capita at destination. This elasticity is twice as high for within-EU migration, reflecting the higher degree of labor mobility within the European Union. We also find that tightening of laws regulating immigrant entry reduce rapidly and significantly their flow.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6655.

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Length: 34 pages
Date of creation: Jun 2012
Date of revision:
Publication status: published as 'The effect of income and immigration policies on international migration' in: Migration Studies, 2013, 1 (1), 47-74.
Handle: RePEc:iza:izadps:dp6655

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Keywords: labor movements; international migration; immigration policies;

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References

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  1. Libertad Gonzalez & Francesc Ortega, 2009. "Immigration and Housing Booms: Evidence from Spain," CReAM Discussion Paper Series, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London 0919, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Graziella Bertocchi & Chiara Strozzi, 2007. "The Evolution of Citizenship: Economic and Institutional Determinants," Center for Economic Research (RECent), University of Modena and Reggio E., Dept. of Economics 009, University of Modena and Reggio E., Dept. of Economics.
  3. Facchini, Giovanni & Steinhardt, Max, 2011. "What Drives U.S. Immigration Policy? Evidence from Congressional Roll Call Votes," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8299, C.E.P.R. Discussion Papers.
  4. Iranzo, Susana & Peri, Giovanni, 2009. "Migration and trade: Theory with an Application to the Eastern- Western European Integration," Working Papers, Universitat Rovira i Virgili, Department of Economics 2072/42865, Universitat Rovira i Virgili, Department of Economics.
  5. Keith Head & John Ries & Thierry Mayer, 2008. "The erosion of colonial trade linkages after independence," Sciences Po publications, Sciences Po 6951, Sciences Po.
  6. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, Elsevier, vol. 95(1), pages 42-57, May.
  7. Julian di Giovanni & Andrei A. Levchenko & Francesc Ortega, 2014. "A global view of cross-border migration," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 1414, Department of Economics and Business, Universitat Pompeu Fabra.
  8. Ortega, Francesc, 2009. "Immigration, Citizenship, and the Size of Government," IZA Discussion Papers, Institute for the Study of Labor (IZA) 4528, Institute for the Study of Labor (IZA).
  9. Ortega, Francesc & Polavieja, Javier G., 2009. "Labor-Market Exposure as a Determinant of Attitudes toward Immigration," IZA Discussion Papers, Institute for the Study of Labor (IZA) 4519, Institute for the Study of Labor (IZA).
  10. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 123(2), pages 441-487, 05.
  11. George J. Borjas, 1987. "Self-Selection and the Earnings of Immigrants," NBER Working Papers, National Bureau of Economic Research, Inc 2248, National Bureau of Economic Research, Inc.
  12. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "Multilateral resistance to migration," Journal of Development Economics, Elsevier, Elsevier, vol. 102(C), pages 79-100.
  13. McKenzie, David & Theoharides, Caroline & Yang, Dean, 2012. "Distortions in the international migrant labor market :evidence from Filipino migration and wage responses to destination country economic shocks," Policy Research Working Paper Series, The World Bank 6041, The World Bank.
  14. Bertoli, Simone & Fernández-Huertas Moraga, Jesús & Ortega, Francesc, 2010. "Immigration Policies and the Ecuadorian Exodus," IZA Discussion Papers, Institute for the Study of Labor (IZA) 4737, Institute for the Study of Labor (IZA).
  15. David Karemera & Victor Iwuagwu Oguledo & Bobby Davis, 2000. "A gravity model analysis of international migration to North America," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 32(13), pages 1745-1755.
  16. Bertoli, S. & Fernández-Huertas Moraga, J. & Ortega, F., 2013. "Crossing the border: Self-selection, earnings and individual migration decisions," Journal of Development Economics, Elsevier, Elsevier, vol. 101(C), pages 75-91.
  17. Chiswick, Barry R. & Hatton, Timothy J., 2002. "International Migration and the Integration of Labor Markets," IZA Discussion Papers, Institute for the Study of Labor (IZA) 559, Institute for the Study of Labor (IZA).
  18. Pilar García Gómez & Guillem López, 2003. "Hypothesis on immigration and welfare," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 905, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2005.
  19. Francesc Ortega & Giovanni Peri, 2009. "The Causes and Effects of International Migrations: Evidence from OECD Countries 1980-2005," Working Papers, University of California, Davis, Department of Economics 96, University of California, Davis, Department of Economics.
  20. Hatton, Timothy J., 2010. "The Cliometrics of International Migration: A Survey," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7803, C.E.P.R. Discussion Papers.
  21. Hatton, Timothy J., 2005. "European Asylum Policy," IZA Discussion Papers, Institute for the Study of Labor (IZA) 1721, Institute for the Study of Labor (IZA).
  22. Graziella Bertocchi & Chiara Strozzi, 2008. "International migration and the role of institutions," Public Choice, Springer, Springer, vol. 137(1), pages 81-102, October.
  23. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, Elsevier, vol. 40(9), pages 1737-1743, December.
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RePEc Biblio mentions

As found on the RePEc Biblio, the curated bibliography for Economics:
  1. > International Economics > International Migration
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Cited by:
  1. Betz, William & Simpson, Nicole B., 2013. "The Effects of International Migration on the Well-Being of Native Populations in Europe," IZA Discussion Papers, Institute for the Study of Labor (IZA) 7368, Institute for the Study of Labor (IZA).
  2. Ortega, Francesc & Peri, Giovanni, 2014. "Openness and income: The roles of trade and migration," Journal of International Economics, Elsevier, Elsevier, vol. 92(2), pages 231-251.
  3. Ortega, Francesc & Peri, Giovanni, 2013. "Migration, Trade and Income," IZA Discussion Papers, Institute for the Study of Labor (IZA) 7325, Institute for the Study of Labor (IZA).

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